LONDON  –   5 October 2005 – Aon UK today embarked on a major restructuring of its UK insurance broking and risk management operations to realign its business more effectively around its clients’ needs in light of the changing shape of the insurance market.   As part of this process, the company anticipates taking actions that will reduce employee numbers by up to 750 out of a total 6,800 UK workforce over the next 24 months. 

The company informed employees today that it will enter into consultation on 27 October.  It is anticipated that the job reductions will be achieved through a mix of natural attrition and redundancies.

The restructure is the result of a far reaching review of Aon’s activities around the world initiated by Aon Corporation’s President and CEO Gregory C. Case to improve performance and achieve long-term growth throughout the group.  The restructuring will enable Aon to realign its UK business to improve the efficiency of its operations and provide improved client service.

The biggest changes will be to the Specialty and Risk Services divisions and in corporate shared services functions.  These divisions will operate with a flatter, simpler organisation  – via the reduction of internal management structures – in order to allow the business to spend more time serving clients’ needs.   The restructure will also provide for the removal of any inefficiencies created by duplication of processes.  The organisational changes will ensure that all of Aon’s clients worldwide gain better access to its global expertise and the resources of a centre of excellence in the London insurance market.

In line with plans initiated during 2004 and 2005, Aon Consulting, the HR and pensions consulting business, and the Reinsurance division will continue to implement separate business improvement programmes and will be impacted to a much lesser extent.

The company is also reviewing its property portfolio. The results of this review will be released as and when specific decisions are made.

Dennis Mahoney, chairman and chief executive of Aon UK, said:  “Today we have announced our plans to reshape Aon in the UK around our clients’ needs in order to secure our long-term growth.  The old ways of doing business are changing forever and our business needs to reflect this.  2006 will be a watershed year for Aon as we strive to meet the challenge of a profoundly changed marketplace.  By realigning our activities still further around clients we will continue to improve our service to them.”

“Sadly it means that a number of our people will have to leave us.  We will enter into full consultation with our employees to ensure everyone is dealt with in the most equitable and fair way possible. No one likes to lose people from a business, but these are necessary and difficult choices in order to secure the long-term future for the majority in the business.

“We have an opportunity to position Aon at the forefront of this industry. We have the skills and the expertise to deliver unmatched service and this new structure will unlock those skills and expertise fully to make Aon the broker of choice in the market.”

Note to Editors:

About Aon

Aon Corporation (www.aon.com) is a leading provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. The company employs approximately 48,000 professionals in its 500 offices in more than 120 countries.  Backed by broad resources, industry knowledge and technical expertise, Aon professionals help a wide range of clients develop effective risk management and workforce productivity solutions.

This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results, depending on a variety of factors.  Potential factors that could impact results include the general economic conditions in different countries around the world, fluctuations in global equity and fixed income markets, exchange rates, rating agency actions, resolution of pending regulatory investigations and related issues, including those related to compensation arrangements with underwriters, pension funding, ultimate paid claims may be different from actuarial estimates and actuarial estimates may change over time, changes in commercial property and casualty markets and commercial premium rates, the competitive environment, the actual costs of resolution of contingent liabilities and other loss contingencies, and the heightened level of potential errors and omissions liability arising from placements of complex policies and sophisticated reinsurance arrangements in an insurance market in which insurer reserves are under pressure.  Further information concerning the Company and its business, including factors that potentially could materially affect the Company’s financial results, is contained in the Company’s filings with the Securities and Exchange Commission.